Southern Peru Copper - Comparative Multiple Analysis

Southern Peru Copper (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Southern Peru Copper

WikiWealth compares Southern Peru Copper's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Southern Peru Copper's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Southern Peru Copper.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Southern Peru Copper's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Southern Peru Copper's Analysis

How does this work? The Comparative Investment Analysis determines the value of Southern Peru Copper by comparing Southern Peru Copper financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Southern Peru Copper.

See the Southern Peru Copper cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Southern Peru Copper.

Also, see the Southern Peru Copper's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Southern Peru Copper's valuation conclusion for a quick summary.